Stamp Duty - Site Gift Tax?

Quirkey33

Hi All,

I am looking for some advice on the best way to reduce overall tax costs with transferring a site to build our new home. Myself and my finance are about to apply for planning permission on a site on her home land. We will eventually get the site transferred into her or our name once we have received planning permission. We are both first time buyers and unmarried.

I guess we are looking for the most cost efficient way to minimise taxes throughout this process but are hearing varying ways to do this. Any advice wod be much appreciated!

Option 1 - Apply for planning in both names, Get site transferred into both names and apply for mortgage in both names.. likely tax rate for this option?

Option 2 - Apply for planning in my partners name (her home land), get site transferred into her name, get solicitor to draw up letter/legal agreement that I own half the site should we split up and then apply for mortgage in both names?

Option 1 seems like the obvious process however I've heard option 2 can decrease taxes to be paid as site is being gifted to daughter only. Would I be protected with this letter and would it present a problem trying to get a mortgage if my name isn't on the site or planning application?


Thanks in advance!

Quirkey33

anybody any advice?!

BryanF

dont bump the thread!!will I move this to a more appropriate forum?? Let us know by PM thanks

The_Morrigan

You can't seek professional advice here - I'd suggest you go speak to tax specialist and a lawyer as this is a complex area and you need proper advice.